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2 Dividend-Paying Equipment & Leasing Stocks You May Count On
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The Zacks Transportation - Equipment and Leasing industry is gaining from strong trade volumes and upbeat container demand, with economic activities picking up. The improvement in the demand scenario with respect to railcars is also a positive for the industry.
Given this encouraging backdrop, it would be a wise decision to invest in some dividend-paying stocks like Ryder System, Inc. (R - Free Report) and Triton International Limited from the Transportation - Equipment and Leasing industry.
Why Dividend Growth Stocks?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics.
In view of the tailwinds mentioned, it can be safely said that dividend-paying stocks appear as a preferred option compared to non-dividend-paying stocks in periods of a high degree of market volatility such as the present situation.
How to Pick Stocks With Solid Dividend Payouts?
In order to choose some of the best dividend stocks from the aforementioned industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%.
Ryder pays out a quarterly dividend of 62 cents ($2.48 annualized) per share, which gives it a 2.85% yield at the current stock price. This company’s payout ratio is 16% of its earnings at present. The five-year dividend growth rate of 3.51%. (Check Ryder’s dividend history here).
Ryder is benefiting from strong rental demand and favorable pricing. R’s bullish outlook for 2022 is also encouraging. It now expects total revenues and operating revenues to increase approximately 23% and 18%, respectively, in 2022 (previous view: rise 22% and 16%, respectively). Adjusted EPS for the whole year is estimated in the range of $15.65-$15.85 (prior view: $14.30 - $14.80). R expects free cash flow in the range of $800-900 million (previous view: $750-$850 million) in 2022. Adjusted ROE (return on investment) is expected to be 26-27% (previous view: 25-26%).
Triton International: Headquartered in Hamilton, Bermuda, this Zacks Rank #3 (Hold) company engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal containers and chassis to shipping lines, and freight forwarding companies and manufacturers.
Concurrent with the third-quarter 2022 earnings release, TRTN’s board of directors has increased its quarterly cash dividend from 65 cents per share to 70 cents, indicating a dividend hike of almost 8%. The raised dividend will be paid out on Dec 22, 2022 to shareholders of record at the close of business on Dec 8, 2022. Prior to the dividend hike, Triton paid out a quarterly dividend of 65 cents ($2.60 annualized) per share, which gives it a 4.01% yield at the current stock price. This company’s payout ratio is 23%, with a five-year dividend growth rate of 6.98%. (Check Triton’s dividend history here).
Triton International is also active on the buyback front. Triton repurchased 3.2 million common shares during the third quarter and has repurchased an additional 0.9 million shares through Oct 26, 2022.
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2 Dividend-Paying Equipment & Leasing Stocks You May Count On
The Zacks Transportation - Equipment and Leasing industry is gaining from strong trade volumes and upbeat container demand, with economic activities picking up. The improvement in the demand scenario with respect to railcars is also a positive for the industry.
Given this encouraging backdrop, it would be a wise decision to invest in some dividend-paying stocks like Ryder System, Inc. (R - Free Report) and Triton International Limited from the Transportation - Equipment and Leasing industry.
Why Dividend Growth Stocks?
Stocks that have a strong history of dividend growth belong to mature companies, which are less susceptible to large swings in the market, and act as a hedge against economic or political uncertainty as well as stock market volatility. At the same time, these offer downside protection with their consistent increase in payouts.
Additionally, these stocks have superior fundamentals that make dividend growth a quality and promising investment for the long term. These include a sustainable business model, a long track of profitability, rising cash flows, good liquidity, a strong balance sheet and some value characteristics.
In view of the tailwinds mentioned, it can be safely said that dividend-paying stocks appear as a preferred option compared to non-dividend-paying stocks in periods of a high degree of market volatility such as the present situation.
How to Pick Stocks With Solid Dividend Payouts?
In order to choose some of the best dividend stocks from the aforementioned industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%.
Ryder: Headquartered in Miami, FL, this Zacks Rank #2 (Buy) operates as a logistics and transportation company worldwide. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ryder pays out a quarterly dividend of 62 cents ($2.48 annualized) per share, which gives it a 2.85% yield at the current stock price. This company’s payout ratio is 16% of its earnings at present. The five-year dividend growth rate of 3.51%. (Check Ryder’s dividend history here).
Ryder is benefiting from strong rental demand and favorable pricing. R’s bullish outlook for 2022 is also encouraging. It now expects total revenues and operating revenues to increase approximately 23% and 18%, respectively, in 2022 (previous view: rise 22% and 16%, respectively). Adjusted EPS for the whole year is estimated in the range of $15.65-$15.85 (prior view: $14.30 - $14.80). R expects free cash flow in the range of $800-900 million (previous view: $750-$850 million) in 2022. Adjusted ROE (return on investment) is expected to be 26-27% (previous view: 25-26%).
Ryder System, Inc. Dividend Yield (TTM)
Ryder System, Inc. dividend-yield-ttm | Ryder System, Inc. Quote
Triton International: Headquartered in Hamilton, Bermuda, this Zacks Rank #3 (Hold) company engages in the acquisition, leasing, re-leasing, and sale of various types of intermodal containers and chassis to shipping lines, and freight forwarding companies and manufacturers.
Concurrent with the third-quarter 2022 earnings release, TRTN’s board of directors has increased its quarterly cash dividend from 65 cents per share to 70 cents, indicating a dividend hike of almost 8%. The raised dividend will be paid out on Dec 22, 2022 to shareholders of record at the close of business on Dec 8, 2022. Prior to the dividend hike, Triton paid out a quarterly dividend of 65 cents ($2.60 annualized) per share, which gives it a 4.01% yield at the current stock price. This company’s payout ratio is 23%, with a five-year dividend growth rate of 6.98%. (Check Triton’s dividend history here).
Triton International is also active on the buyback front. Triton repurchased 3.2 million common shares during the third quarter and has repurchased an additional 0.9 million shares through Oct 26, 2022.
Triton International Limited Dividend Yield (TTM)
Triton International Limited dividend-yield-ttm | Triton International Limited Quote